From 15 September 2026, Decree 347/2026/ND-CP introduces significant changes to compulsory fire and explosion insurance that every enterprise with covered premises must understand. The core change is not a “new rate table” but a new premium calculation method: establishments with multiple independent buildings of different uses may now have premiums calculated separately per building instead of one blended rate.
1. Legal basis
- Decree 347/2026/ND-CP — effective 15 September 2026; amending Decree 169/2025/ND-CP, Decree 105/2025/ND-CP and Decree 106/2025/ND-CP on fire prevention, firefighting, rescue and salvage.
- Original framework: Clause 1, Article 35 of Decree 105/2025/ND-CP (covered entities); Appendix VI (premises categories for premium calculation); Appendix VII (list of establishments) to Decree 105/2025/ND-CP.
2. New calculation: separate premiums per independent building
Under Clause 4, Article 28 of Decree 347/2026 (amending Clause 1, Article 24 of Decree 105/2025): for an establishment with multiple independent houses/buildings of different uses that satisfy fire-safety technical standards and regulations, the premium for each building may be calculated separately according to the premises category in Appendix VI.
Previously, many establishments paid one blended premium across all structures despite very different fire-risk profiles. The new rule means enterprises no longer “subsidize” low-risk buildings at high-risk rates — provided each building is genuinely independent and meets fire-safety standards.
3. Minimum sum insured
The minimum compulsory fire/explosion sum insured equals the market value of the assets at the time the insurance contract is concluded. For goods and materials, coverage must match storage duration at the premises. Enterprises should revalue assets at market prices to protect their claim rights.
4. Expanded exemptions
Independent houses/buildings that fully comply with fire-safety standards and are assessed as low fire-hazard are now exempt from compulsory participation (amended Point b, Clause 1, Article 23 of Decree 105/2025). Good news for establishments that have invested seriously in fire safety.
5. When may insurers refuse to sell?
Decree 347 allows insurers to refuse sale of compulsory fire/explosion insurance to establishments subject to fire-safety design appraisal that lack the approval document. This aligns with the abolition of fire-safety acceptance procedures — premises without completed fire-safety legal formalities cannot buy insurance to “regularize” their status.
6. Premium revenue: up to 75% supports firefighting forces
Up to 75% of actual annual premium revenue from compulsory fire/explosion insurance may be used to fund firefighting and rescue equipment for the Fire Prevention, Firefighting and Rescue Police — up 10 percentage points from before.
7. Immediate action checklist for enterprises
- Review your premises list: check Appendix VII of Decree 105/2025 to identify covered vs exempt establishments.
- Split the premium: if you operate multiple independent buildings of different uses, prepare dossiers proving independence and fire-safety compliance to qualify for per-building calculation under Appendix VI.
- Complete fire-safety legal formalities: establishments subject to design appraisal must hold the approval document or insurers may refuse coverage.
- Revalue assets: ensure the minimum sum insured reflects market value at contract signing.
- Keep records: fire-safety dossiers may be paper, electronic or combined; certain documents must be retained at least 5 years.
Frequently asked questions
Q: Does Decree 347 issue a new premium rate table?
A: No. It changes the calculation method (separate per independent building per Appendix VI of Decree 105/2025), not the rate table itself.
Q: Is a low-fire-hazard warehouse required to buy compulsory insurance?
A: If it is an independent building meeting fire-safety standards and assessed as low fire-hazard, it falls within the exemption.
Q: We have no design-appraisal approval yet. Where can we buy insurance?
A: Insurers may refuse sale. Complete the fire-safety design appraisal procedure first.
Legal sources
- Decree 347/2026/ND-CP (effective 15 September 2026; Articles 28, 29) — thuvienphapluat.vn
- Decree 105/2025/ND-CP (Articles 23, 24, 35; Appendices VI, VII)
- Law on Fire Prevention, Firefighting, Rescue and Salvage
Transparency note: This article was prepared and reviewed by the FLAW AI Legal Council (an artificial-intelligence council), not by a human lawyer. It is for general information only and does not constitute legal advice for any specific case. This article is pending QA Council review.